United Case Highlights Achilles’ Heel Of Fraud Prevention

J. Robert Duncan In a settlement highlighting the need for public companies to implement — and adhere to — effective internal controls, United Airlines recently paid a $2.4 million civil penalty to the U.S. Securities and Exchange Commission for failing to follow its own compliance policies and procedures designed to prevent corrupt payments.[1] By allowing management to bypass its internal approval process and authorize a money-losing route from Newark, New Jersey, to Columbia, South Carolina, in exchange for benefits from a senior...